The U.S. is up two spots to No. 2, Canada is up four spots to No. 3, Singapore is up four to No. 4 and New Zealand is up seven to No. 5. Great Britain, Sweden, Australia, Hong Kong and Norway complete this year's top 10.
Croatia dropped from last year's No. 42 to No. 50, with the weekly underlining persistent problems such as the country's high unemployment rate, trade deficit growth and uneven regional development.
The medium-term risks for the stability of Croatia's economy are its high external debt, anemic export sector, strained government budget and excessive reliance on tourism revenues.
Of the other countries, Romania ranks 47th, Hungary 40th and Slovenia 36th.
The Forbes Best Countries for Business ranking has been published for four years and it is based on the analysis of the economic situation and business climate in 127 countries.
The weekly's analysts pay special attention to economic policy, freedom of trade, inflation and the taxation system, investment and intellectual property protection, and the level of corruption and personal freedoms.